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January 16, 2020

Danske Bank secures nod to offload Latvia unit to Citadele Bank

The sale of Danske Bank Latvia operations by Citadele Bank has secured the green light from the banking regulator of Latvia, reported Reuters.

“Cidatele Bank had signed an agreement on the intention to buy the remaining part of mortgage loans of Danske Bank’s Latvian branch,” a spokeswoman from Citadele Bank was quoted as saying by the publication.

The deal is expected to be wrapped up in February this year.

The approval is the result of Danske Bank’s request that was made last December, the Financial and Capital Market Commission noted.

Developments at Danske Bank

Danske Bank has been going through troubled times lately. It has been under the scanner of Denmark, Estonia, Britain and the US authorities for suspicious payments worth around €200bn.

In February 2019, the bank decided to shutter business in Russia and all Baltic States after Estonian authorities ordered it to stop banking operations in the country over money laundering charges.

In June last year, Danske Bank agreed to offload its Estonian private loans portfolio to LHV Pank for around €410m.

Last October, Danske Bank started a hiring freeze to cope with rising compliance costs.

A few days ago, a report emerged of Danske Bank planning to reduce employee headcount by 2,000.

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